Investment opportunities in Corridors, NIMZ and Cluster under
IIUS
Industrial Corridors are being increasingly promoted as effective instruments
for achieving accelerated industrial growth by effecting integration between
industry and infrastructure.
It entails creating globally comparable
infrastructure in a designated pathway, to provide a conducive and competitive
environment for setting up businesses. Industrial Corridors enable optimal
utilisation of a region’s potential for growth by facilitating economic
agglomeration and industrial clustering. Industrial corridors are normally
conceived along major transport arteries, typically rail trunk routes, as they
provide the vital connectivity to the area/ region and facilitate efficient
movement of freight and people.
2.
DELHI MUMBAI INDUSTRIAL CORRIDOR (DMIC) PROJECT:
The DMIC project was launched in pursuance of an MOU signed between
the Government of India and the Government of Japan in December 2006. The
project, spanning the States of Uttar Pradesh, Haryana, Rajasthan, Madhya
Pradesh, Gujarat and Maharashtra along the Western Dedicated Freight
Corridor (DFC) of the railways, seeks to leverage the connectivity backbone
provided by the DFC to create a strong economic base with a globally
competitive environment and state-of-the-art infrastructure to activate local
commerce, enhance investment and attain sustainable development. This is the
first time that the geographical planning is being integrated with the digital
master planning and an Information & Communication Technology (ICT) backbone
has been established to create Smart cities of the future. In essence,
technology is being used to enable India to leap frog in the process of
urbanisation.
The following 8 Industrial Cities have been taken up for development in
the first phase of DMIC, on the recommendation of the respective State
Governments. The master planning of these cities has been done by the best
master planners from across the world and are founded on key sustainability
concepts to compete with the best manufacturing and investment destinations
in the world. This is the first time India has embarked on the process of
planned urbanisation with manufacturing as the key economic driver:-
Name of the Node
State
Area (in
Sq.km.)
Project Master Planners
Dadri-NoidaGhaziabad
Investment Region
Uttar
Pradesh
210
Halcrow, UK, Synoate and
Knight Frank
Manesar-Bawal
Investment Region
Haryana
402
Jurong, KPMG and DTZ
KhushkheraBhiwadi-Neemrana
Investment Region
Rajasthan
165
Kuiper Compagnons, DHV,
Cushman & Wakefield and
ECORYS
Pithampur-DharMadhya
Mhow
Investment Pradesh
Region
372
Lea Associates South
Asia
Pvt
Ltd
in
association
with
Development
and
Research Service Pvt
Ltd.
Ahmedabad-Dholera Gujarat
Investment Region
920
Halcrow, UK, Synoate and
Knight Frank
Shendra
Bidkin Maharashtr
Investment Region
a
84
AECOM Asia
Ltd,
RMSI,
International
AECOM India.
Company
Colliers
and
Dighi
Port Maharashtr
Industrial Area
a
253
AECOM Asia
Ltd,
RMSI,
International
AECOM India.
Company
Colliers
and
Jodhpur
Marwar
Area
155
Parsons Brinckerhoff
Pali Rajasthan
Industrial
The master plans for all the nodes except Dadri Noida Ghaziabad
Investment Region in Uttar Pradesh and Jodhpur Pali Marwar Industrial
Area in Rajasthan has been completed and accepted by the State
Government.
Land acquisition for the new industrial regions/ areas as well as for the
Early Bird Projects identified for development as model initiatives are at
advanced stages of progress in different States. In case of Dholera and
Shendra, preliminary engineering of the trunk infrastructure (drainage,
sewerage, solid waste, ICT, road, lighting etc.) is presently underway.
Government of India has created a DMIC Project Implementation Trust
Fund with a corpus of Rs.17,500 crores to be utilized over a period of five
years and an additional Project Development Fund of Rs. 1000 crore for
undertaking project development activities. This will be utilised as a
Revolving corpus and the Trust would leverage the resources provided by
Government of India to raise long term funding from financial institutions
(World Bank, ADB & Capital Bond Markets) for supporting the development
of DMIC cities.
Government of Japan has also agreed to provide funding of USD 4.5
billion through a mix of JICA and JBIC lending for various projects being
developed in the Phase-1 of DMIC Project. In this regard a Special Rolling
Plan is being finalized by Ministry of Finance.
Following project proposals have been fully structured and are at
different stages of implementation:
i.
ii.
iii.
iv.
v.
vi.
Model Solar Project at Neemrana, Rajasthan;
Water Desalination Project at Dahej, Gujarat;
Logistics Data Bank for DMIC Region;
Integrated Industrial Township at Greater Noida, U.P.;
Vikram Udyogpuri (formerly Knowledge City), Ujjain, Madhya Pradesh;
Water Supply to Pithampur from Narmada-Kshipra Canal, Madhya
Pradesh;
vii. Rail connectivity from Bhimnath to Dholera, Gujarat;
viii. Multi Modal Logistics Hub Project at Greater Noida, UP (In principle
approval);
ix. Integrated Multi Modal Logistics Hub Project at Rewari, Haryana (In
principle approval).
About 35-40% projects are trunk infrastructure projects for which
funds are provided by Government of India through DMIC Trust. The balance
60-65% projects are being structured under Public Private Partnership (PPP).
The project will throw up vast opportunities in the areas of PPP,
Contractors/Consultants, O&M Operators, Equipment Suppliers, Rolling
Stock Suppliers and financing across the value chain.
3.
CHENNAI-BENGALURU INDUSTRIAL CORRIDOR (CBIC):
During the Summit Meeting held between India and Japan in December
2011, the Prime Ministers of both countries decided to strengthen efforts to
improve infrastructure in Chennai Bangalore area and directed to operationalise
the modalities for preparation of the Comprehensive Integrated Master Plan
for development of Chennai Bangalore Industrial Corridor (CBIC). The corridor
between Chennai-Benagluru-Chitradurga (around 560 km) would have an
Influence Area spread across the States of Karnataka, Andhra Pradesh and
Tamil Nadu. JICA has identified a total of 25 priority projects in the CBIC
region for debottlenecking infrastructure. The Master Planning for three nodes
namely Tumkur ( Karnataka), Ponneri ( Tamil Nadu) and Krishnapatnam ( Andhra
Pradesh) has been initiated under JICA assistance.
4.
East Coast Economic Corridor (ECEC) Project
A Concept note prepared by Asian Development Bank on East Cost Economic
Corridor linking Kolkata Chennai- Tuticorin has been considered and it has been
decided to get a feasibility study done with the help of Asian Development Bank
in respect of the corridor. In compliance of the commitment made by the
Central Government in the Andhra Pradesh Reorganisation Act, 2014, it has also
been decided that in the first phase of the study, Asian Development Bank will
focus on the Vizag- Chennai Section. ADB has submitted the Inception Report.
The Conceptual Development Plan on the Vizag-Chennai corridor will be
submitted by them by early October 2014.
5.
AMRITSAR KOLKATA INDUSTRIAL CORRIDOR (AKIC):
In order to give a boost to industrial development in the densely
populated States of Northern and Eastern India, the Prime Minister has
approved to commence preparatory work on creating an Amritsar Kolkata
Industrial Corridor (AKIC) will be structured around the Eastern Dedicated
Freight Corridor (EDFC) as the backbone and also the Highway system that
exists on this route. The AKIC will also leverage the Inland Water System being
developed along National Waterway-1 which extends from Allahabad to Haldia.
The AKIC will cover the seven states namely Punjab, Haryana, Uttar Pradesh,
Uttarkhand, Bihar, Jharkhand and West Bengal. The Cabinet in principle
approved the AKIC project on 20th January, 2014. The Feasibility Study of
Amritsar-Kolkata Industrial Corridor (AKIC) is in progress.
6.
North East Myanmar Industrial Corridor:
It has been observed from the Tokyo Declaration for India-Japan Special
Strategic and Global Partnership which was held on September , 2014 that
“The two Prime Ministers placed special emphasis on Japan's cooperation
for enhanced connectivity and development in Northeast India and linking the
region to other economic corridors in India and to Southeast Asia, which would
catalyse economic development and increase prosperity in the region”
In pursuance of above decision, this department is in process of obtaining
comments/inputs from the JICA study team and also from ADB.
7.
BANGALORE-MUMBAI ECONOMIC CORRIDOR(BMEC) PROJECT
During the Summit meeting held between India and United Kingdom in February,
2013, the Prime Ministers of both the countries welcomed the development in
cooperation on infrastructure since the last summit. They noted UK’s interest in
cooperating with India for the development of a new Bengaluru-Mumbai Economic
Corridor (BMEC). The leaders agreed to examine and evolve the modalities and
content of a feasibility study of this project concept through mutual discussions
and to work out a roadmap for a possible partnership in this area. DMICDC Ltd. on
behalf of DIPP acts as the nodal agency for the preparation of the perspective
plan for the project.
BMEC Corridor region proposed along the Bangalore – Mumbai part of NH4,
Bangalore- Mumbai rail link & Dabhol- Bangalore Gas Pipeline covers the States
of Karnataka & Maharashtra and is expected to influence an area of 1.4 lakh
sq.km. covering 26 districts with 145 sub districts with a population of 79
million. The proposed BMEC region is being developed with an objective of
transforming the region into a globally competitive manufacturing and
investment destination through sustainable development.
The consultant has been appointed for the preparation of the Perspective Plan
for BMEC region and is currently in the process of identifying potential
industrial nodes across the corridor region. The feasibility of developing High
Speed Rail connectivity between Bangalore & Mumbai which is also part of the
Diamond Quadrilateral rail corridor, Greenfield Port developments, Establishing
Ports connectivity between the BMEC region and the ports of Western Coast
including Dedicated Freight Corridor, Major Power Project etc. is also being
assesses as part of the Corridor.
Steel, Aerospace, Defence & Space, Automobile, Medical Equipment, Advanced
Robotics, Textile, Mining & Food Processing etc. are identified as potential
Industrial Sectors of the region.
8.
NATIONAL MANUFACTURING POLICY
In order to uplift the business sentiment and boost investment, the Government
of India has notified a National Manufacturing Policy (NMP) vide a Press Note
dated 4th November, 2011 with the objective of enhancing the share of
manufacturing in GDP to 25% and creating 100 million jobs over a decade or so.
The policy is based on the principle of industrial growth in partnership with the
States. The Central Government will create the enabling policy frame work,
provide incentives for infrastructure development on a Public Private
Partnership (PPP) basis through appropriate financing instruments, and State
Governments will be encouraged to adopt the instrumentalities provided in the
policy. The instrumentalities of NMP include setting up of National Investment
and Manufacturing Zones (NIMZ) and support to clusters.
NIMZs have been conceived as large integrated industrial townships with stateof-the-art infrastructure; land use on the basis of zoning; clean and energy
efficient technology; necessary social infrastructure; skill development
facilities, etc. to provide a conducive environment for manufacturing industries.
To enable the NIMZ to function as a self-governing and autonomous body, it will
be declared by the State Government as a Industrial Township under Article
243 Q (1)(c) of the Constitution. These NIMZs would be managed by a Special
Purpose Vehicle (SPV) which would ensure master planning of the zone; preclearances for setting up the industrial units to be located within the zone and
undertake such other functions as specified in the various section of the policy.
The policy mandates that the SPV in a zone will be headed by a senior
government official and will include inter-alia an official expert conversant with
the work relating to pollution control/environmental protection. The NIMZs
would be different from SEZs in terms of size; level of infrastructure planning;
governance structures related to regulatory procedures; exit policies; fiscal
incentives, etc. The proposals in the policy are generally sector neutral,
location neutral and technology neutral except incentivization of green
technology. While the National Investment and Manufacturing Zones (NIMZs)
are an important instrumentality, the proposals contained in the Policy apply to
manufacturing industry throughout the country including wherever industry is
able to organize itself into clusters and adopt a model of self-regulation as
enunciated in the policy.
Nine NIMZs outside the Delhi Mumbai Industrial Corridor (DMIC) region
have been given in-principle approval (i) Nagpur in Maharashtra; (ii) Tumkur in
Karnataka ;(iii)Bidar in Karnataka; (iv) Kolar in Karnataka; (v) Gulabarga in
Karnataka; (vi) Chittoor in Andhra Pradesh (vii) Medak in Telangana; (viii)
Prakasam in Andhra Pradesh; and (ix) Kalinganagar, Jajpur district in Odisha.
Eight Investment Regions along the Delhi Mumbai Industrial Corridor (DMIC)
project nodes have also been accorded in principle approval as NIMZs. The
details are as under:
i.
Ahmedabad-Dholera Investment Region, Gujarat
ii.
Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra
iii. Manesar-Bawal Investment Region, Haryana
iv. Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan
v.
Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh
vi. Dadri-Noida-Ghaziabad Investment Region, Uttar Pradesh
vii. Dighi Port Industrial Area, Maharashtra ; and
viii. Jodhpur-Pali-Marwar Region in Rajasthan
9.
Modified Industrial Infrastructure Upgradation Scheme (MIIUS) :
DIPP has accorded ‘in principle’ approval for 21 projects for a total value of
central grant of Rs. 550 crore under Modified Industrial Infrastructure
Upgradation Scheme (MIIUS) for development of Industrial Infrastructure in
the country. Two projects each in Chhattisgarh, Haryana, Himachal Pradesh,
Jammu & Kashmir, Jharkhand, Karnataka, Madhya Pradesh & Telengana and one
project each in Kerala, Mizoram, Orissa, Punjab and Tripura have been
sanctioned. Measures for using recycled water through Zero Liquid Discharge
(ZLD) system and Central Effluent Treatment Plant (CETP) have been promoted.
In about 2 to 3 years time period (after completion of projects), these projects
would provide common industrial infrastructure for industries in the cluster; it
would be good opportunities for investors to set up manufacturing facilities in
the following Industrial Clusters:
S. No.
Name of Project Proposal
State
1
Industrial Growth Centre, Urla, Distt. Raipur
Chhattisgarh
2
Sirgitti Engineering Cluster
Chhattisgarh
3
4
5
6
7
8
9
10
11
12
13
14
15
Industrial Infra Upgradation of IMT Manesar
Industrial Infra Upgradation at IMT, Bawal
Industrial Area, Kandrauri
Industrial Area, Pandoga
SIDCO, Industrial Growth Centre, Samba
Industrial Estate, Kathua
Devipur Industrial Area
Tupundana Industrial Area, Ranchi
Furniture Hub at Ernakulam
Kolhar Industrial Area, Bidar
Bangalore Aerospace Park, Devenhalli
Industrial Area, Sitapur
Industrial Area, Ujjaini
Haryana
Haryana
HP
HP
J &K
J &K
Jharkhand
Jharkhand
Kerala
Karnataka
Karnataka
MP
MP
16
Industrial Area Zuangtui, Aizawl
NER - Mizoram
17
Bodhjungnagar Industrial Area
NER - Tripura
18
Angul Aluminium Park
Odisha
19
20
Punjab Small Industries and Export Corporation Punjab
Ltd. (PSIEC) Estate, Patiala
Paddy Processing Cluster, Ranga-Reddy Distt.
Telengana
21
Pashamylaran Industrial Area, Medak
****************
Telengana